Last updated on May 27, 2022In a recent Court of Appeal case, the court determined that three modified crew-cab vehicles that Coco-Cola supplied to its employees were cars and not vans. The case only considered the definition of a van for benefit in kind purposes, but it brings concerns about other areas of tax where…
Last updated on May 27, 2022From 1st July 2021 (postponed from 1st January 2021), new measures from the European Commission’s VAT e-commerce package will come into practice. These new measures aim to create more efficient rules for online businesses, support e-commerce start-ups thriving in the EU and tackle fraud. From 01st July 2021, the scope…
Last updated on May 27, 2022For sales made on or after 1st January 2021, you will not be able to use the UK’s VAT VAT MOSS (Mini One Stop Shop) service to declare sales and pay VAT due in EU member states. The final return period for the UK’s VAT MOSS system will be the…
Last updated on May 27, 2022**Please note there will be new rules from January 2021** In January 2015 it became law to charge consumers of digital services local VAT based on where they used the service. Instead of having to register for VAT in all the different EU countries where you have customers, you could…
Last updated on May 27, 2022With HMRC now putting IR35 changes back into play we thought we’d do an update on what this means for freelancers. What is IR35 IR35 allows HMRC to collect additional tax payments in cases where a contractor is an employee in all but name e.g. a contractor operating through an…
Last updated about 3 weeks agoIf you are a sole trader and don’t yet have an accountant, this “HOW TO” takes you through creating your own Government Gateway ID. First, go to https://www.gov.uk/personal-tax-account and click the “Create sign-in details” This will create your Government gateway ID. (Note the number, as you will need it to log on…
Last updated on May 26, 2022As the Christmas season is rapidly approaching here’s a quick reminder of what is tax deductible and what isn’t! Christmas Parties The rules on Christmas parties depend on who is invited… Staff – the main tax implication of staff Christmas parties is whether you need to report the cost of…
Last updated on May 26, 2022Claiming for the amount you spend on food is allowed when you’re self-employed, however, you can’t just claim for everything you eat. So, what’s the deal? HMRC’s general rule is that you can only claim for expenses that are “wholly and exclusively” for the purposes of trade, this makes food…
Last updated on May 21, 2023Reverse charge system From March 2021, a VAT reverse charge system for construction services will come into effect which will change how VAT is collected in the building and construction industry. The customer receiving the service will have to pay the VAT due to HMRC instead of paying the supplier….
Last updated on October 5, 2022As a sole trader, you don’t receive a salary or wage in the traditional sense. So how do you pay yourself? It’s simple: you’re paid based on ‘drawings’ from your business. You can simply draw money from your business account to pay yourself as a sole trader. For this reason,…
Last updated on April 6, 2023If you’re one of the many people in the UK who runs their Limited Company from their own home, there’s some good news for you! As long as the work you do at home is work that earns money for the company and not just admin work, you’re entitled to…
Last updated on June 2, 2023There are a lot of companies on the internet that say they can claim tax relief money back that you’ve spent on things like work uniform, tools, business travel, professional fees and subscriptions … their fee?? A percentage of your tax back!! Well this is true, however, what most of…
Last updated on December 16, 2023You may notice on your 2021/22 self-assessment tax return that you are being asked to make ‘payments on account’ towards your 2022/23 tax return. This will be the case if your Income Tax and class 4 National Insurance total more than £1,000 for the tax year and you don’t pay…
Last updated on May 26, 2022If you’re one of the many self-employed people in the UK who is working from home, there’s some good news for you! You’re entitled to claim tax relief on part of the running costs of your home. Here’s a quick guide on what you can claim. What running costs can…
Last updated on May 26, 2022A client who had been with us for over 4 years recently emailed and asked “what was it we exactly did for them”. This came after the client had gone from paying no tax to paying £5k tax in their latest financial year. I found this fascinating as it dawned…
Last updated on May 26, 2022Tax Relief brings some Christmas Cheer! As the Christmas season is rapidly approaching here’s a quick reminder of what is tax deductible and what isn’t! Christmas Parties The rules on Christmas parties depend on who is invited… Staff – the main tax implication of staff Christmas parties is whether you…
Last updated about 3 weeks agoAre you married or in a civil partnership? If so, you may be entitled to a £1,258 tax break called the marriage tax allowance. It is estimated about one million couples are still missing out! Are you one of the millions of people who are eligible but haven’t claimed yet?…
Last updated about 3 weeks agoYou may notice on your 2023/24 self-assessment tax return that you are being asked to make ‘payments on account’ towards your 2024/25 tax return. This will be the case if your Income Tax and class 4 National Insurance total more than £1,000 for the tax year and you don’t pay…
Last updated on May 26, 2022 Back in spring when the AAT informed us that all accountants needed to be DBS Checked to enable them to continue to be licensed, I was a little disgruntled. I don’t mind being checked as I have nothing to hide but it was having to send off my personal documents and…
Last updated on May 26, 2022 Business entertainment and VAT can often be a grey area for business owners, here’s a quick guide on the key points. VAT cannot be reclaimed on the provision of business entertainment expenses to UK business contacts and non-UK business contacts who are not customers. This includes: Provision of food…
Last updated on May 26, 2022 There are numerous factors to consider when deciding which method of buying and using a car for business is the most tax efficient. Sole Traders As a sole trader there is no concept of a ‘company car’ as there is no legal difference between you and your business. There…
Last updated on May 26, 2022 I may have exaggerated on the on jubilation but it is time for a “pocket-sized” celebration this week as 29th May marked Tax Freedom Day 2018! Every year the Adam Smith Institute calculates the number of days the ‘average’ person would have to work just to pay off their…
Last updated on September 30, 2022Assuming the charity is VAT registered it may reclaim VAT on any purchases that are directly related to any VAT-taxable goods or services it sells. However, VAT-Registered charities are quite rare as the vast majority of their income will be exempt and therefore outside the scope of VAT. In the…
Last updated on May 26, 2022 R&D tax reliefs support companies that work on innovative projects in science and technology. What counts as R&D? To qualify for R&D the work you are carrying out must be part of a specific project to make an advance in science or technology (social sciences like economics and theoretical…
Last updated on May 26, 2022Part of our internal process system is to ask for feedback when a client leaves. We stress that it isn’t for us to make excuses but it is to help improve our customer service for future clients. To make this effective when a client replies I have to be very…
Last updated about 3 weeks ago If you take out more money from your company than you’ve put in – and it isn’t your salary or a legal dividend (i.e. you take a dividend during the year but it transpires at the end of the year you did not make sufficient profit to take this…
Last updated on October 25, 2022Since the introduction of the new IR35 public sector rules in April, our tax specialist department have noticed that agencies have been quick to amend their contract wordings. As a result, more clauses have appeared intending to pass on the liability to the contractors Personal Service Company (PSC) for the…
Last updated on May 25, 2022Are these simple assessments HMRC’s way of turning back time??? Apparently, I say this because it was before my time as an accountant, before Self Assessments HMRC estimated how much tax someone needed to pay, the tax payer then appealed, a tax return would be submitted and once the figures…
Last updated on May 25, 2022Next steps There is a large amount of information available regarding IR35 and how to protect yourself from it but what happens if you are actually selected for an investigation? The initial HMRC letter The majority of IR35 investigations begin with a letter from HMRC titled ‘Check of employer records’….
Last updated on May 25, 2022Results from a YouGov survey carried out in April, revealed that more than three-quarters (76%) of senior decision makers in British businesses are unaware of a new law which could make their failure to prevent tax evasion in their company a criminal offence. Under the new law the business could…
Last updated on May 25, 2022If you rent out property in the UK, then Section 24 probably affects you! The Changes From April 2017 tax relief on loan interest of residential property income has been restricted. This is being phased in over the next 4 years so by 6th April 2020 loan interest will be…
Last updated on May 25, 2022When I was introduced to Cloud Accounting several years ago I was extremely excited as I could see the potential this gave business owners to have better control over their finances within their business. I was shocked as to how many people differed from my opinion telling me they were…
Last updated on May 24, 2022Make sure your volunteers are insured! Charities do great work – helping to improve others’ lives. However, by doing this it can make them vulnerable to risks and liabilities they are not aware of. It does seem unfair but charities of all sizes are subject to the same level of…
Last updated about 3 months agoIf a customer doesn’t pay your bill you can get back any VAT on this that you’ve paid over to HMRC. But where do you stand if you’re withholding payment to a supplier because you’re in dispute with them? Timing your claim Unless you use HMRC’s cash accounting scheme…
Last updated on May 24, 2022Wear & Tear Allowance is gone From 6th April 2016 (1st April 2016 for companies) the 10% wear & tear allowance is no longer available for furnished residential properties. Instead the actual cost of replacing furnishings and white goods used in the property are allowed as a deduction against the…
Last updated on May 24, 2022Currently companies must file an Annual Return to Companies House every year. The Annual Return provides fundamental information such as the company name, registered address and details on the company’s directors, officers and share capital. However, from 30th June 2016 the Annual Return will be replaced by a Confirmation Statement….
Last updated on May 24, 2022Under current rules, self-employed people have to pay Class 2 National Insurance contributions at £2.80 per week if they make a profit of £5,965 or more per year. They also pay Class 4 National Insurance contributions if their profits are over £8,060 per year (9% on profits between £8,060 and…
Last updated on May 24, 2022Did you know the date of your accounting year-end is entirely up to YOU! Yes its true, you as a Business Owner have that choice yourself! However, it’s not as simple as picking a quiet spell and going with it. There are many factors to consider… Did you know… The…
Last updated on May 24, 2022As small business owners, contractors and directors of companies you will be aware of this wonderful Tax Season we currently find ourselves in. The team at TI Accountancy have been emailing you to keep reminding you of the online returns deadline… 31st January 2016. In order to dodge a hefty…
Last updated on May 24, 2022Rules on reclaiming VAT following registration have been changed by HM Revenue & Customs (HMRC), meaning that some firms could lose money that they had expected would be refunded to them. Previously, traders that already held stock and assets prior to registering for VAT could reclaim the full amount of…
